Crypto Biz: Telegram and OpenSea on authorities’ radar

After weeks of relative quiet in the crypto industry, several events have once again pushed the sector into the spotlight. Telegram CEO Pavel Durov’s arrest in France , followed by his release four days later , has drawn global attention to Telegram’s operations worldwide. 

French authorities charged Durov with complicity in illegal activities, including refusal to communicate with authorities, money laundering, criminal association and providing cryptology services without prior declaration.

His arrest has triggered a new investigation into Telegram’s operations in India, raising concerns about the broader business impact on the messaging app worldwide.

In another headline, OpenSea, one of the largest marketplaces for non-fungible tokens, received a Wells notice from the US Securities and Exchange Commission on Aug. 28, signaling potential legal challenges ahead. The impending enforcement action could further blur the boundaries for digital art businesses in the country.

This week’s Crypto Biz also examines Nvidia’s earnings results, Rhodium’s bankruptcy, BlackRock’s new crypto exchange-traded fund (ETF) in Brazil and SxT Labs’ funding raise. 

Nvidia Q2 revenue beats expectations in record-setting boost to AI sector

Nvidia held its second-quarter earnings call on Wednesday, Aug. 28, in what investors and analysts have been treating as a sort of “Groundhog’s Day” for the artificial intelligence industry.

The earnings call did not disappoint as chief financial officer Colette Kress announced Q2 earnings of $30 billion, beating its previous estimate by two billion dollars. Further boosting investor morale were company projections for record-setting revenues of $32.4 billion to continue in the third quarter. Kress attributed the growth to graphics processing unit sales, excitement over the company’s impending Blackwell chips, and positive performance in data services domestically and internationally, specifically emphasizing gains in the Chinese market. 

Bitcoin miner Rhodium files for bankruptcy in Texas court

Bitcoin mining firm Rhodium Enterprises has filed for voluntary bankruptcy under Chapter 11 in the United States Bankruptcy Court for the Southern District of Texas. The filing was submitted on Aug. 24 and included six subsidiaries: Rhodium Encore, Jordan HPC, Rhodium JV, Rhodium 2.0, Rhodium 10MW and Rhodium 30MW.

According to the document, the company’s debts range between $50 million and $100 million, while its total assets are estimated between $100 million and $500 million. Rhodium’s bankruptcy follows previous reports of financial distress under the company’s umbrella. 

Source: PacerMonitor

Blockchain database firm SxT Labs raises $20 million in Series A round

Space and Time (SxT) Labs has announced a $20 million Series A funding raise led by Framework Ventures. Several venture capital firms also contributed to the round, including Lightspeed Faction, Arrington Capital and Hivemind Capital, as well as Microsoft’s M12 Ventures, DCG, F-Prime Capital, OKX Ventures, Circle Ventures and Alumni Ventures.

SxT Labs has reportedly spent the last two years building its proof-of-SQL, a zero-knowledge circuit that provides smart contract developers and companies with the capability to verify data integrity. To date, the startup has secured $50 million in funding to accelerate engineering and product development. 

BlackRock launches Ether ETF in Brazil

BlackRock has listed an Ether ( ETF ) ETF in Brazil, expanding its crypto offerings in the country. The ETF is tied to a depositary receipt and trades under the ticker ETHA3. Brazil was one of the first markets to allow trading of crypto-tied products on its stock exchange. With BlackRock’s new fund, investors in the country will have 15 ETFs or depositary receipts offering exposure to digital assets.

In July, local regulators approved the world’s first spot Solana-based ETF, which is expected to go live in the coming months. 

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